Accounting for Projects Setup Steps

You can set up project accounting in one of three ways based on your need to track project costs and revenue. This table lists the purpose and setup requirements for each method:

Type of Accounting	Purpose	Setup Required
Straight	Use when transactions always follow the resource; for example, when transactions that a resource creates are charged to that resource's organizational entity.	Define accounting rules. See Accounting Rules Page.
Transorganizational	Use to charge transactions to an organizational entity that differs from that of the resource; for example, when an employee is temporarily assigned to another office, but the company wants to charge the employee's expenses to the employee's original office.	1. Enable organizations on the Installation Options - Project Costing page. See Application Fundamentals: Installation Options - Project Costing Page.
		2. Define the organizational hierarchy. See Organization Hierarchy Page.
		3. Define either the project-owning organization or the project activity-owning organization. See Defining Project- and Activity-Owning Organizations.
		4. Define accounting rules. See Accounting Rules Page.
Organizational sharing	Use to share costs and revenue between a resource's organization and the organization that owns the project or activity. Note: Contracts with a contract classification of Government are not eligible for organizational sharing.	1. Enable organizations on the Installation Options - Project Costing page. See Application Fundamentals: Installation Options - Project Costing Page.
		2. Enable costs and revenue sharing on the Installation Options - Project Costing page.
		3. Define the organizational hierarchy. See Organization Hierarchy Page.
		4. Define organizational sharing options. See Organizational Sharing Options Page.
		5. Define sharing rules (source criteria and target definitions). See Organizational Sharing Rules Page, Organizational Sharing Rules - Target Page.
		6. (Optional) Define sharing exceptions. See Defining Sharing Exceptions.
		7. Define either the project-owning organization or the project activity-owning organizations. See Defining Project- and Activity-Owning Organizations.
		8. Define accounting rules. Complete this step if you want to send transactions to GL. See Accounting Rules Page.

Note:

In situations that require transorganizational or organizational-sharing accounting, the resource that generates the transaction is typically an employee or consultant. You can, however, use these methods to account for transactions that are generated by resources other than human resources.